PNB Housing Finance announced Q1FY26 results Net profit increased by 23% YoY and declined by 3% QoQ to Rs 534 crore. Net Interest Income grew by 17% YoY and 4% QoQ to Rs 760 crore. Operating expenditure grew by 12% YoY and 2% QoQ to Rs 216 crore. Pre-provision operating profit grew by 17% YoY and declined by 2% QoQ to Rs 632 crore. Yield at 9.99% in Q1FY26 as compared to 10.03% in Q4FY25 and Q1FY25. Cost of Borrowing is at 7.76% in Q1FY26 as compared to 7.84% in Q4FY25 and 7.92% in Q1FY25. Spread on loans is at 2.23% in Q1FY26 as compared to 2.19% in Q4FY25 and 2.11% in Q1FY25. Net Interest Margin stood at 3.74% in Q1FY26 as compared to 3.75% in Q4FY25 and 3.65% in Q1FY25. Gross Margin, net of acquisition cost, stood at 4.06% in Q1FY26. With recovery from write-off pool, Credit Cost was -27 bps in Q1FY26 as compared to -32 bps in Q4FY25 and -7 bps in Q1FY25. Business Operations: In Apr’25, 20 branches are reclassified from Prime segment to Emerging Markets segment and segment numbers are re-casted for prior period to ensure like to like comparison. The disbursements during Q1FY26 grew by 13% YoY to Rs 4,980 crore. Retail disbursement grew by 14% YoY to Rs 4,980 with Affordable segment growth at 30% and Emerging Markets segment growth at 32% during Q1FY26. Loan Asset grew by 16% YoY and 3% QoQ to Rs 77,732 crore as on 30 th June 2025. Retail loans grew by 18% YoY and 3% QoQ to Rs 76,923 crore as on 30 th June 2025. Within Retail, Affordable Loan Asset grew by 143% YoY to Rs 5,744 crore, Emerging Markets Loan Asset grew by 20% YoY to Rs 22,701 crore and Prime segment grew by 10% YoY to Rs 48,478 crore as on 30 th June 2025. Corporate loans are at Rs 809 crore as on 30th June 2025, reduced by 56% YoY. Asset under Management (AUM) grew by 13% YoY and 2% QoQ to Rs 82,100 crore as on 30th June 2025. Distribution and Service Network: The Company has 356 branches locations as on 30th June 2025 with 200 branches in Affordable segment, 80 in Emerging Markets segment and 76 in Prime segment. Asset Quality: Gross Non-Performing Assets stood at 1.06% as on 30th June 2025 as compared to 1.35% as on 30 th June 2024 and 1.08% as on 31 st Mar 2025. Retail GNPA is 1.07% as on 30th June 2025 as compared to 1.39% as on 30th June 2024 and 1.09 % as on 31 st Mar 2025. Corporate GNPA stands Nil as on 30th June 2025, 30th June 2024 and 31st Mar 2025. Net NPA stood at 0.69% as on 30 th June 2025. NNPA in Retail segment is at 0.70%. Capital to Risk Asset Ratio (CRAR): The Company’s CRAR stood at 29.68% as on 30th June 2025, of which Tier I capital is 28.96 % and Tier II is 0.72 % as compared to 29.50% as on 30th June 2024, of which Tier I capital is 28.43% and Tier II is 1.07%. Girish Kousgi, Managing Director & CEO said: “The Company’s focus on high-yielding business led to 30% YoY disbursement growth in the Affordable and Emerging markets segment during the quarter contributing 50% in the retail disbursement. Our asset quality continues to improve with GNPA of 1.06 % as on June 30, 2025. While maintaining a balance between growth and profitability, our ROA stood at 2.57% annualised for FY26. As we look forward, we are confident of our ability to achieve our stated guidance for the fiscal year. Result PDF
Conference Call with PNB Housing Finance Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.